Digital Transformation initiative attracts South African audiovisual leader to Spain for a €25 million joint investment

The Ministry for Digital Transformation and Civil Service has announced a €25 million investment - channelled through the Spanish Society for Technological Transformation (SETT) - to create two audiovisual companies through a public-private partnership with South African investors. This marks South Africa's largest investment in Spanish creative industries and will result in the establishment of an audiovisual production platform in the Community of Madrid, along with two post-production studios in the Canary Islands and the Basque Country.

The announcement was made by the Minister for Digital Transformation and Civil Service, Óscar López, at an event held at the department's headquarters alongside Tshepiso Chikapa-Phiri, CEO of Known Associates Group (KAG), which owns the subsidiaries of the South African companies that are to be established in Spain. SETT will invest €12.7 million in these two projects, which are part of the Spain Audiovisual Hub Plan.

"The Spain Audiovisual Hub Plan was a brilliant idea and is proving to be a success. It is more than fulfilling one of its main objectives: to attract investment to Spain", emphasised the minister, who also highlighted two other recent projects approved by the Council of Ministers thanks to a €40 million investment by the Government of Spain: the establishment in Madrid of the Mexican-based Ítaca Films studio, and the British studio Good Films at the Ciudad de la Luz complex in Alicante.

López announced that the Hub's investment drive, which has mobilised over €1.6 billion, will continue, "because it is a highly profitable investment for the country. The audiovisual industry is a cultural sector; it is not merely about its economic value and the jobs it provides. We are working on a national project that is proving to be worthwhile", he asserted.

Spain, the world's sixth-largest audiovisual producer

According to the European Audiovisual Observatory, Spain has become the European Union's leading audiovisual market. With 423 productions in 2025, output has grown by 31% compared to the previous year, overtaking Italy, the United Kingdom and France. It also ranks as the sixth-largest audiovisual producer globally, trailing only India, Japan, South Korea, China and the United States.

Since 2021, box office revenue in Spain has risen by over 93%; audiovisual employment has doubled, reaching more than 64,000 professionals in 2025; and female employment in the sector has increased by 81.7%, with one in three feature films directed by women.

""None of this is a coincidence. Public support for the sector, the simplification of visa procedures and tax incentives generate a return of 9 euros for every euro invested", the minister pointed out.

In this regard, Tshepiso Chikapa-Phiri, CEO of Known Associates Group, explained that this support from the Government of Spain was one of the reasons for investing in our country. "It was a very attractive opportunity. "It made us feel safe", he said. The company's director also highlighted that another reason was the strength of the audiovisual industry, and she emphasised "the opportunity" that this partnership will offer young people in both Spain and South Africa.

"This agreement marks a turning point for our company and for South Africa", said Tshepiso Chikapa-Phiri. "We are convinced that this investment in Spain will serve as a strategic platform for developing Spanish content with an international reach and for strengthening ties between Spain and South Africa", she added.

Two projects with a 'widespread reach' across Spain

The first of these two ventures, Moonlighting Studios Spain, a Spanish subsidiary of the South African parent company, will receive a total capital injection of €18 million. SETT is contributing €8.8 million to this initiative, which aims to establish an audiovisual production hub in Madrid focused on project development and intellectual property creation, resulting in the production of ten feature films and documentaries.

Through its various production services, Moonlighting has been involved in well-known films such as "Mufasa" and "Mad Max: "Fury Road", "The Woman King", "Mission Impossible: "The Final Reckoning" and the "Resident Evil" series. As well as its ability to support major blockbuster productions, Moonlighting also produces films with social themes that address the realities of the African continent, as well as issues such as diversity and multiculturalism.

The second operation involves a capital contribution to The Refinery - also of South African origin - totalling €8 million, with SETT contributing €3.9 million for a 49% stake. The Spanish division of The Refinery is set to establish a presence in Spain through two studios, one in the Canary Islands and the other in the Basque Country. A "widespread presence" across the territory, which Minister López has welcomed.

This investment will enable the establishment of two fully equipped facilities operating as an integrated post-production platform, aiming to keep this activity within Spain rather than outsourcing it to other countries. Both initiatives will foster greater creative and economic control over projects produced in Spain.

These companies are part of the Known Associates Group (KAG), an African media company founded by the businesswoman Tshepiso Chikapa-Phiri and led by Joel Chikapa-Phiri, a producer with a career spanning more than 30 years. KAG is a leading player in Africa's audiovisual sector and operates across the entire film value chain: from pre-production to exhibition, including marketing, distribution, financing and infrastructure.

In both cases, the private investment comes from Sinobukhosi, a company led by entrepreneur Luleka Masinda that possesses significant assets in technology, resources and commercial industrial property.

Second phase of the Audiovisual Hub

This operation forms part of the second phase of the Spain Audiovisual Hub Plan, an initiative that forms part of the Recovery, Transformation and Resilience Plan, and is funded by the European Union - through Next Generation funds - and is led by the Ministry of Digital Transformation and Civil Service, via the State Secretariat for Digitalisation and Artificial Intelligence (SEDIA).

In addition to the Spain Audiovisual Hub, the SETT manages two other financial instruments designed to boost the technology business ecosystem: PERTE Chip, focused on microelectronics and semiconductors, and Next Tech, which incentivises private investment and improves access to financing in strategic Spanish sectors linked to digital transformation.

Non official translation